The average long-term mortgage rate in the US edged higher this week, ending a five-week streak of easing borrowing costs that had offered some relief to prospective homebuyers.According to mortgage buyer Freddie Mac, the average rate on a 30-year home loan ticked up to 6.72% from 6.67% last week. A year ago, the rate was higher at 6.89%, AP reported. The increase also extended to 15-year fixed-rate mortgages, often used for refinancing. The average rose to 5.86% from 5.80% a week earlier, compared to 6.17% at this time last year, Freddie Mac said on Thursday.Persistently high borrowing costs have continued to weigh on the housing market, which has been in a sales slump since 2022. “Mortgage rates may come down modestly over the coming months,” said Lisa Sturtevant, chief economist at Bright MLS, “but other economic headwinds — including the impact of tariffs on consumer goods, weaker labour market conditions and rising consumer debt — could be what continue to hold the housing market in the second half of 2025.”Despite the recent dip in rates, home prices remain elevated, which has discouraged many buyers. Sales of previously occupied homes last year fell to their lowest in nearly three decades and have remained subdued so far in 2025.Mortgage rates are primarily influenced by movements in the 10-year Treasury yield, which lenders use to price home loans. The yield rose to 4.37% by midday Thursday, up from 4.34% a day earlier. Yields climbed last week after a stronger-than-expected jobs report led traders to bet that the Federal Reserve may keep interest rates on hold.The 30-year mortgage rate has hovered near its 2025 peak of just over 7%, set in January. It briefly dipped to a low of 6.62% in April.Recent easing in rates helped drive a 9.4% jump in mortgage applications last week, according to data from the Mortgage Bankers Association. But economists broadly expect rates to remain in the 6% to 7% range for the rest of the year.
